DSE 2017 Question 1: Consumer preferences and utility
Person A lexicographically prefers good x to good y: comparing two bundles she strictly prefers the one with more x, and if two bundles have equal x she strictly prefers the one with more y. A's indifference curves in (x,y)-space are
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Person A lexicographically prefers good x to good y: comparing two bundles she strictly prefers the one with more x, and if two bundles have equal x she strictly prefers the one with more y. A 's indifference curves in (x,y) -space are (A) vertical lines (B) horizontal lines (C) diagonal lines (D) none of the above
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Perfect substitutes, complements and lexicographic preferences, part of Consumer preferences and utility in Microeconomics.
Preferences that give straight-line, L-shaped or dictionary-ordered indifference sets, and how they differ from standard ones.
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